Banks can’t stall on PPI redress, says Which?Banks must carry on processing customer complaints

25 January 2011

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The Judicial Review of the Financial Services Authority guidelines for PPI complaints handing begins today. It will serve as a timely reminder that thousands of people were wrongly sold this type of policy.

Which? chief executive, Peter Vicary-smith, says: 'This Judicial Review is further proof that the banks are shamelessly trying to duck out of giving millions of consumers the redress they’re entitled to. The banks are still obliged to consider all PPI complaints, so there is no excuse for them to stall. Which? wants the banks to stick to the rules and carry on processing their customers’ legitimate complaints.'

Which? is concerned that while the Judicial Review is underway people may be put off making a complaint about their PPI. Which? recommends that anyone who thinks they have been mis-sold PPI should submit a complaint to their bank. If their complaint is rejected or stalled by their bank for longer than eight weeks, then they should take their complaint to the Financial Ombudsman (FOS). 89% of people who took their PPI complaint to FOS in 2009/10 had it upheld in their favour.

How can I tell if I've been mis-sold PPI?

If a Payment Protection Insurance (PPI) policy holder can answer ‘no’ to any of the following five questions they may have been a victim of mis-selling.

Optional Did the adviser make it clear that the insurance was optional (if this was the case)?

Exclusions Did the adviser tell you about the ‘significant exclusions’ under the policy? For example, the exclusion that states you won’t be covered for any pre-existing medical condition?

Paying for insurance up front If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in a single payment?

Borrowing to pay for insurance If you had to pay for the insurance as a single premium, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?

Insurance expires before loan If your PPI policy expires before your loan or finance agreement does, you'll be paying interest on insurance that is no longer in force. Did the adviser make this clear?

PPI mis-selling tool

Which? has created an online PPI claims tool for those who suspect that they have been mis-sold this product. On average people who have used the tool have successfully claimed £4,489.

Find if what to do if you've been mis-sold PPI in our guide

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